Rising oil prices fuel major increase in used EV sales
The Middle Eastern conflict is having a marked positive impact on the popularity of used EVs in the UK, according to Indicata’s latest Market Watch report.
Sales have risen to a record 9.8% of all used cars sold in April, up from 7.4% in March, while stock levels have reduced from 10% to 9.1% as drivers turn to electric to combat the rising fuel pump prices of both petrol and diesel.
Used EV sales rising
The Market Days’ Supply (MDS) of EVs has also fallen to a record low of 41 days which means electric cars are the second fastest selling powertrain behind petrol cars which have an MDS of 39 days. This EV figure is the lowest in the 16 European countries where Indicata publishes its Market Watch report.
The MDS of EVs according to Indicata data was 85 days in January which shows just how quickly market sentiment towards used EVs has changed in just a few months. MDS is derived from dividing the current supply of inventory by the average daily retail sales rate over the past 45 days. A lower number signifies high demand and quick sales.
Dean Merritt, Indicata UK’s national retail strategy manager, said as used EV sales continue to rise:
“We are seeing a clear acceleration in used BEV sales, combined with a contraction in stock levels which is improving market fluidity. It has helped clear the backlog of used EV stock; however, this adjustment has not yet translated into an increase in prices.”
Used EV prices have fallen by 0.5% in the past month according to Indicata’s data. The current market dynamics are likely to support a stabilisation of residual values in the short term; however, it remains uncertain how sustainable this shift will be if energy prices begin to normalise over the coming weeks and months.
“It puts the used EV market in a good place as consumer and wholesale demand is growing at a time when more EVs are being de-fleeted by leasing and salary sacrifice companies,” Merritt added.
